The growth of the French gross domestic product (GDP) reached 7% in 2021, a jump which had not occurred for fifty-two years, but which comes after the record recession of 2020 (- 8%), according to a first estimate published Friday, January 28 by INSEE.
With a fourth quarter of 2021 which saw growth of 0.7%, the French economy “now clearly exceeds” its level before the health crisis, underlines the National Institute of Statistics. One “spectacular rebound” Who “erases the economic crisis”, commented the Minister of the Economy Bruno Le Maire.
The performance of the French economy, which promises to be one of the strongest in the euro zone, surpasses the forecast of INSEE and the Banque de France, which forecast growth of 6.7% for 2021. This comes in particular from an upward revision of 0.1 point in GDP growth during each of the first three quarters of the year, details INSEE.
However, for the whole of 2021, GDP remains “1.6% below its average level in 2019”, adds the institute, a sign that 2021 does not completely mark a return to normal for the economy, the first part of the year having still been marked by significant health restrictions linked to the Covid-19 epidemic.
Rebound in household investment
In 2021, growth was particularly driven by the sharp increase in the production of goods and services (+7.4%, after -8.5% in 2020), even if the production of goods “remains significantly behind” compared to its average level in 2019.
Household consumption, penalized in the first half by health restrictions, did not return to its pre-crisis level until the very end of the year, and recorded an increase of 4.8% overall. 2021 (–7.2% in 2020). But over 2021 as a whole, it remains below its average level for 2019.
Investment by households (real estate, etc.), businesses and local authorities, rebounding by 11.6%, largely exceeded its 2019 level. Finally, foreign trade contributed slightly to growth, even if, on average, annual, “exports and imports remain in 2021 at a particularly degraded level, respectively 8.5% and 5.5% lower than their average level of 2019”.